Deck 16: Direct Response

Question 1

Service firms in direct marketing specialize in ________.

A) printing, mailing, list brokering, and data management
B) media buying
C) evaluating the results of direct-marketing campaigns
D) creating direct-marketing messages
E) delivering ordered products to customers

Answer 1

A

Question 2

Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner,be it a catalog,additional information,or the product itself?

A) advertising agency
B) independent agency
C) service firm
D) fulfillment house
E) direct-marketing agency

Answer 2

D

Question 3

The term or phrase that refers to the way that marketers identify potential customers is ________.

A) mining
B) prospecting
C) hunting
D) phishing
E) converting

Answer 3

B

Question 4

Which basic objective of direct marketing involves attempting to motivate customers to visit an event or retail outlet?

A) developing leads
B) driving traffic
C) testing offers
D) enhancing awareness
E) driving responses

Question 5

Which of the following is NOT a type of company that has traditionally made extensive use of direct marketing?

A) insurance companies
B) book and record clubs
C) gardening firms
D) publishers
E) oil companies

Question 6

Which of the following is the last step in the direct-marketing process?

A) objectives and strategy
B) the offer
C) customer ordering
D) fulfillment and customer follow-up
E) relationship building

Question 7

Direct marketers have identified the criteria of recency,frequency,and monetary to predict who will most likely ________.

A) respond negatively to direct-marketing
B) have the most purchasing power
C) stop purchasing
D) repurchase
E) recommend to a friend

Question 8

What is the first step in the direct-marketing process?

A) objectives and strategy
B) the offer
C) customer ordering
D) fulfillment and customer follow-up
E) relationship building

Question 9

Which of the following are the two fundamental components of the direct-marketing business?

A) communication sent directly to the consumer and promotion of brand awareness
B) promotion of brand awareness and consumer response sent directly back to the source
C) IMC and database marketing
D) communication sent directly to the consumer and consumer response sent directly back to the source
E) consumer response sent directly back to the source and comparative marketing

Question 10

What is the second step in the direct-marketing process?

A) objectives and strategy
B) the offer
C) customer ordering
D) fulfillment and customer follow-up
E) relationship building

Question 11

Which of the following statements about direct-marketing customers is most likely true?

A) The more recently customers have bought from a company, the less likely they are to buy again.
B) The less money customers have recently spent buying from a company, the more likely they are to buy again.
C) The less frequently customers have bought from a company, the more likely they are to buy again.
D) The more money customers have recently spent with a company, the less likely they are to buy again.
E) The more frequently customers have bought from a company, the more likely they are to buy again.

Question 12

Getting the product to those who order it is called ________.

A) optimization
B) generation
C) prospecting
D) conversion
E) fulfillment

Question 13

Direct-response marketing is typically designed to accomplish which of the following?

A) increase awareness
B) enhance attitudes
C) produce an immediate sale or response
D) gain acceptance among several stakeholders
E) encourage switching from a competitor's product or service

Question 14

The best customer prospects of direct marketers are ________.

A) profiled consumers
B) current customers
C) affiliated consumers
D) segmented consumers
E) purged customers

Question 15

________ marketing occurs when a seller and customers deal with each other directly rather than through an intermediary,such as a wholesaler or retailer.

A) Integrated
B) Simplified
C) Leveled
D) Direct-response
E) Tiered

Question 16

There are four main players in direct-response marketing communication.Which of the following is NOT one of these four main players?

A) state and federal governments that regulate marketing communication
B) marketers who use direct response to sell products or services
C) agencies that specialize in direct response
D) media that deliver messages
E) consumers

Question 17

What is the rationale for the higher cost of direct marketing?

A) The effectiveness of direct-response marketing is not easy to evaluate.
B) Consumers are more accepting of it than of other forms of brand communication.
C) Response rates have increased dramatically in the past 10 years.
D) Consumers feel more confident in marketers' concerns for their privacy.
E) The messages are tightly targeted to reach prime prospects.

Question 18

Theo is implementing the direct-marketing process in his business.Currently,he is conducting marketing research,segmenting and targeting markets,and setting objectives.Which step in the direct-marketing process is he implementing?

A) Step 1
B) Step 2
C) Step 3
D) Step 4
E) Step 5

Question 19

Which of the following refers to the percentage of direct-marketing contacts who actually act on a direct-marketing communication?

A) frequency
B) conversion rate
C) recency
D) fulfillment rate
E) variable rate

Question 20

Which of the following is designed to gather leads or answer consumer questions?

A) a one-step offer
B) a two-step offer
C) a profiled offer
D) conversion
E) fulfillment

Question 21

________ is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of users.

A) Skimming
B) Searching
C) Profiling
D) Relationship marketing
E) Fulfillment

Question 22

Which of the following is most likely a true statement about catalogs?

A) Catalogs, for the most part, have been replaced by online publications.
B) Catalogs can sell a variety of brands and products or products solely from the sponsoring brand.
C) The growth in catalogs in the 21st century is in general-interest catalogs.
D) Few paper catalogs are associated with online catalogs.
E) Catalog retailers do not have physical retail outlets.

Question 23

Which of the following are the two types of telemarketing?

A) opt-in and opt-out
B) toll and toll-free
C) internal and external
D) business and organizational
E) inbound and outbound

Question 24

How is most direct mail sent?

A) first-class mail
B) second-class mail
C) second-class bulk mail
D) third-class bulk mail
E) certified mail

Question 25

Which of the following is NOT an advantage of direct mail?

A) reaches a highly targeted audience
B) builds in feedback
C) personalizes the message
D) simplifies calculation of return on investment
E) provides a low cost per thousand

Question 26

Which of the following is NOT part of the fulfillment stage of the direct-marketing process?

A) receiving payment
B) delivering the product
C) providing delivery tracking information to customers
D) offering a variety of ways for customers to respond
E) processing the transaction

Question 27

Rooms with large banks of phones and computers where workers send and receive calls are known as ________.

A) call centers
B) telephone pits
C) call lists
D) call floors
E) call pits

Question 28

Which of the following is NOT a good tip for creating effective direct mail?

A) Get the attention of the targeted prospect as the envelope comes from the mailbox.
B) Provide all of the information you have about the product.
C) Provide critical information about product use.
D) Use an incentive to encourage a fast response.
E) Inspire confidence, minimize risk, and establish that the company is reputable.

Question 29

Which of the following is the most popular method of direct marketing among those organizations that use direct marketing?

A) personal sales
B) sales promotion
C) telemarketing
D) print direct-response advertising
E) direct mail

Question 30

Which of the following is the original and most effective form of direct marketing?

A) personal sales
B) sales promotion
C) catalog marketing
D) print direct-response advertising
E) direct mail

Question 31

Which of the following is most likely true of infomercials?

A) They are the most popular method of direct-marketing.
B) They typically air during prime time.
C) They are usually 30 to 60 minutes long.
D) They are typically used for products with low profit margins.
E) They are usually used for products that are widely available in retail outlets.

Question 32

All of the variables that are intended to satisfy the needs of the consumer are considered part of the ________ in direct marketing.

A) message
B) media
C) fulfillment
D) offer
E) response

Question 33

Which of the following is a form of personal sales?

A) direct-mail marketing
B) direct-response advertising
C) catalog marketing
D) telemarketing
E) Internet advertising

Question 34

Measuring and evaluating consumer behavior is part of the ________ step in the direct-marketing process.

A) objectives
B) offer
C) response
D) fulfillment
E) relationship building

Question 35

A ________ is a multipage direct-mail publication that shows a variety of merchandise.

A) letter
B) brochure
C) broadsheet
D) self-mailer
E) catalog

Question 36

During the ________ step in the direct-marketing process,the DMC message must make it as easy as possible for customers to respond.

A) objectives
B) offer
C) response
D) fulfillment
E) relationship building

Question 37

During the ________ step of the direct-marketing process,the DMC campaign must communicate benefits to buyers by answering the enduring question: "What's in it for me?"

A) strategy
B) offer
C) response
D) fulfillment
E) relationship building

Question 38

Which of the following is NOT a variable that would be considered part of the offer in direct marketing?

A) media strategy
B) price
C) cost of shipping and handling
D) guarantees and warranties
E) future obligations

Question 39

Which of the following is NOT typically part of the offer in direct marketing?

A) description of the product
B) terms of sale
C) payment information
D) delivery information
E) rebate

Question 40

Of the following,which is the best advice for writing an effective direct-response letter?

A) Make the offer as early as possible in the body of the letter.
B) Don't confuse prospects by including information about a website.
C) Use a general salutation.
D) Use brief descriptions of the product and offer.
E) Do not guarantee the product.

Question 41

In which type of telemarketing is the call initiated by the customer?

A) opt-in
B) opt-out
C) external
D) inbound
E) outbound

Question 42

Which of the following is NOT an objective of a marketing database?

A) to record names of customers, expires, and prospects
B) to store and analyze responses
C) to store and analyze purchasing performance
D) to continue direct communication with customers
E) to record and analyze marketing communications

Question 43

Many marketers now use permission marketing to address the problem of ________.

A) spoofing
B) predictive dialing
C) cold calling
D) spamming
E) variable data marketing

Question 44

Using ________,telemarketers call random numbers rather than numbers of qualified prospects.

A) opt-in telemarketing
B) inbound telemarketing
C) cold calling
D) variable data marketing
E) conversion calling

Question 45

In which type of telemarketing does the call originate with the marketer?

A) opt-in
B) opt-out
C) external
D) inbound
E) outbound

Question 46

Which of the following refers to the use of special computerized programs that use random dialing,making it possible for telemarketing companies to call anyone,even those with unlisted numbers?

A) opt-in telemarketing
B) opt-out telemarketing
C) cold calling
D) conversion calling
E) predictive dialing

Question 47

________ is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct-marketing strategies.

A) Integrated marketing
B) Permission-based marketing
C) Database marketing
D) Conversion marketing
E) Predictive marketing

Question 48

The Register of Known Spam Operations (Rokso)is a kind of "most wanted" list of spammers that is maintained by ________.

A) the Federal Trade Commission
B) the Direct Marketing Association
C) the U.S. Postal Service
D) Internet hosts and service providers
E) the CAN-SPAM Act

Question 49

The database management process begins with a(n)________ that could include completing a warranty card,entering a contest or sweepstakes,or opting in on a website.

A) behavioral target
B) house list
C) information collection point
D) merged list
E) response list

Question 50

What do direct marketers use to keep track of customers,identify prospective customers,and segment groups of customers and prospects?

A) databases
B) permission marketing
C) integrated marketing communication
D) opt-out strategies
E) opt-in strategies

Question 51

In which stage of the database management process is data entered into the computer to merge it with other information already in the file or added at the same time?

A) first
B) second
C) fourth
D) fifth
E) seventh

Question 52

In a marketing database,the term expires means ________.

A) the customer is dead
B) the marketer no longer has permission to communicate with this customer
C) the customer name is no longer valid
D) the customer has not purchased from the marketer for more than 18 months
E) the customer's name has been merged to another list

Question 53

A direct-response ad on television is known as a(n)________.

A) infomercial
B) sponsored program
C) promotional program
D) telemarketing program
E) home shopping network

Question 54

________ is a type of marketing communication that has characteristics of advertising but also includes an element that allows the audience to make a direct response to the advertiser.

A) Direct-response advertising
B) Direct-focus advertising
C) Integrated marketing communications
D) Direct-marketing advertising
E) Direct-to-consumer advertising

Question 55

The ________ regulates email marketing.

A) Do Not Mail List
B) Mail Preference Service
C) McAfee Internet Security Suite
D) CAN-SPAM Act
E) Do Not Call Registry

Question 56

In which stage of the database management process can the direct marketer create clusters of characteristics and behaviors representing valuable consumer segments or target markets?

A) first
B) third
C) fourth
D) fifth
E) seventh

Question 57

Fraudulently using a company's identity to send out spam is known as ________.

A) copy-cat advertising
B) vampire advertising
C) phishing
D) spying
E) spoofing

Question 58

Which of the following is NOT a protection included in the Telemarketing Sales Rule enacted by the Federal Trade Commission in 1995?

A) a prohibition on telemarketing calls made before 8 a.m. or after 9 p.m.
B) strict informational disclosure requirements for telemarketers
C) a prohibition against telemarketers using misrepresentative or misleading statements
D) a provision requiring telemarketers to honor do-not-call lists
E) a provision requiring specific payment collection procedures

Question 59

What is the purpose of the national Do Not Call Registry?

A) to make businesses using telemarketing register all the numbers that they call
B) to allow consumers to receive telemarketing calls only from marketers that they want to call them
C) to stop telemarketers from calling cell phone numbers because consumers must pay for those calls
D) to allow consumers to "opt-out" of telemarketing calls from for-profit businesses
E) to stop telemarketers from calling people at work

Question 60

Through ________,marketers can target individuals based on what they have purchased,what shows they have watched,or what websites they have visited.

A) variable data marketing
B) permission-based marketing
C) behavioral targeting
D) predictive targeting
E) conversion marketing

Question 61

Direct-marketing messages are constantly being measured,enabling direct marketers to learn what works and modify future campaigns based on results.

Question 62

The financial contribution through sales volume of an individual customer or customer segment over a length of time is known as ________.

A) return on investment
B) lifetime customer value
C) customer contribution
D) customer loyalty
E) customer relationship assessment

Question 63

In direct marketing,service firms are agencies that specialize in supplying printing,mailing,and list brokering.

Question 64

A two-step offer is designed to sell consumers a lower-priced item before offering them a higher-priced,and thus more profitable,item.

Question 65

Which type of direct-marketing list consists of the marketer's own customers or members?

A) data list
B) house list
C) converted list
D) response list
E) compiled list

Question 66

Sorting information in a company's database in order to better target customers is called ________.

A) behavioral targeting
B) merging
C) variable data marketing
D) data mining
E) opt-in marketing

Question 67

Direct marketing is often used by nonprofit organizations and by political associations.

Question 68

In direct-response marketing,a business responsible for making sure consumers receive whatever they requested in a timely manner is known as a service firm.

Question 69

In direct marketing,optimization is the function that gets the product to the customer who ordered it.

Question 70

Which type of database provided by an outside firm contains information useful in segmenting as well as contact information?

A) mined database
B) relational database
C) response database
D) house database
E) clustered database

Question 71

Three basic objectives of direct marketing are lead generation,traffic generation,and increasing competition.

Question 72

Direct-response Brand Communication is sometimes referred to as ________ direct marketing.

A) integrated
B) diversified
C) strategic
D) Internet
E) one-to-one

Question 73

Which type of direct-marketing list is a list of some specific category,such as sports car owners,new homebuyers,graduating seniors,or subscribers to a magazine?

A) data list
B) house list
C) compiled list
D) response list
E) prospect list

Question 74

Which type of list is derived from people who have answered some type of direct-response offer?

A) data list
B) house list
C) compiled list
D) response list
E) prospect list

Question 75

Combining direct-mail lists is known as ________.

A) purging
B) merging
C) mining
D) sourcing
E) converting

Question 76

Deleting the repeated names on direct-mail lists that have been combined is known as ________.

A) purging
B) merging
C) mining
D) parsing
E) converting

Question 77

Advertising agencies do not play a role in direct-response marketing.

Question 78

Which type of direct-marketing list is the most valuable list to a marketer?

A) data list
B) house list
C) compiled list
D) response list
E) prospect list

Question 79

The four main players in direct-response marketing are the advertisers,the agencies,the media,and the government.

Question 80

The product or service alone is considered the offer in direct marketing.